Correlation Between Tibet Huayu and Cansino Biologics
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By analyzing existing cross correlation between Tibet Huayu Mining and Cansino Biologics, you can compare the effects of market volatilities on Tibet Huayu and Cansino Biologics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tibet Huayu with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Cansino Biologics.
Diversification Opportunities for Tibet Huayu and Cansino Biologics
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Cansino is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Tibet Huayu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tibet Huayu Mining are associated (or correlated) with Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Cansino Biologics go up and down completely randomly.
Pair Corralation between Tibet Huayu and Cansino Biologics
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.17 times more return on investment than Cansino Biologics. However, Tibet Huayu is 1.17 times more volatile than Cansino Biologics. It trades about 0.12 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.04 per unit of risk. If you would invest 1,325 in Tibet Huayu Mining on October 28, 2024 and sell it today you would earn a total of 79.00 from holding Tibet Huayu Mining or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Cansino Biologics
Performance |
| Timeline |
| Tibet Huayu Mining |
| Cansino Biologics |
Tibet Huayu and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Cansino Biologics
The main advantage of trading using opposite Tibet Huayu and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Cansino Biologics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Cansino Biologics vs. Ming Yang Smart | Cansino Biologics vs. 159681 | Cansino Biologics vs. 159005 | Cansino Biologics vs. Loctek Ergonomic Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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